Detention Billing and Opportunity Cost
Chargeable hours = max(0, actual - free), charge = hours x rate, opportunity cost = hours x on-road revenue/hr. 2 hr free, 5 hr actual, $50/hr, $80/hr truck -> 3 hr, $150 billed, $240 lost (the charge does not cover it). Within free time, nothing bills. The carrier tariff and rate confirmation govern.
Formula and source
detention_hours = max(0, actual - free); billable = hours x rate; opportunity = hours x on-road revenue/hr.
Detention/demurrage billing from carrier tariff and rate-confirmation practice, by name.
Audience
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